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Renewable Energy in Poland

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Renewable Energy in Poland RENEWABLE ENERGY IN POLAND FLANDERS INVESTMENT & TRADE MARKET SURVEY Market study //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// RENEWABLE ENERGY IN POLAND //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// www.flandersinvestmentandtrade.com TABLE OF CONTENTS 1 GENERAL INFORMATION ...................................................................................................................... 3 2 RENEWABLE ENERGY MARKET IN POLAND ......................................................................................... 3 3 SOURCES OF RENEWABLE ENERGY IN POLAND ................................................................................ 7 3.1. SOLAR ENERGY ................................................................................................................. 8 3.2. WIND ENERGY ................................................................................................................. 9 3.3. BIOGAS ENERGY............................................................................................................. 11 3.4. BIOMASS ENERGY .......................................................................................................... 12 4 MARKET POSSIBILITIES FOR FLEMISH COMPANIES ............................................................................ 13 5 USEFL LINKS & CONTACTS .................................................................................................................. 14 5.1. SEARCHING AND BIDDING FOR A PUBLIC CONTRACT ................................................ 14 5.2. RENEWABLE ENERGY ASSOCIATIONS IN POLAND ...................................................... 16 5.3. IMPORTANT EVENTS ..................................................................................................... 16 5.4. COMPANIES .................................................................................................................... 17 June 2019 Flanders Investment & Trade in Poznan Ul. Orzeszkowej 14 lok. 3 60-778 Poznañ – Poland T: +48 61 671 07 58 | E-mail: [email protected] 2 1 GENERAL INFORMATION The increased demand for energy, caused by the fast economic growth of countries on the global scale, the pollution of the environment that aggravates every year and the limited access to natural resources in the world result in the growing interest in new technologies of acquiring energy that facilitate acquiring energy in a way that does not cause any harm to the environment. It is, at the same time, renewable and inexhaustible – which resources will never deplete – the so called “green energy”. A renewable energy source (RES) is defined by the Polish Energy Law Act from 1997 as a source using in transformation process energy of wind, solar radiation, geothermal, waves, sea currents and tides, river's falls as well as energy produced from biomass, landfill biogas and biogas produced in the processes of discharge or sewage treatment or decomposition of plant and animal remains. RES can be divided into the following: » Wind power plants » Hydropower plants » Biomass and biogas as well as biomass and biogas co-combustion power plants and CHPs » Solar power plants 2 RENEWABLE ENERGY MARKET IN POLAND Poland is a coal country: over 80% of its electricity comes from either coal or lignite. By 2017, renewables accounted for 14% of electricity generation, mostly from wind energy. The total energy consumption from renewables in 2016 was 11.3%, mostly from biomass. The National Renewable Energy Action Plan1 commits the country to generate at least 15% of its utilized energy from renewables by 2020. Poland will have serious difficulties in reaching its goal. During the last decade, renewables received a boost at first, mainly from changes in energy market legislation, such as domestic support schemes and the introduction of European competition rules. But since 2012 big energy companies (such as JSW), have lobbied strongly against renewables, delaying a renewable energy bill. Since 2015, the new government has prioritized national energy security over competition practices. Investment in renewable energy sources has given way to a focus on maintaining the current power base. The few policies for renewable energy sources – a green certificates program and support for consumers that also generate power – have been dismantled. Subsidies for small installations have been substantially reduced. An auction system for renewables has replaced the previous support scheme. The operating conditions for producers of onshore wind power have been changed to such an extent that new installations are virtually blocked and many old operators are bankrupt or at risk. Meanwhile, big coal power companies have begun demanding more state support in return for stabilizing the power system. The government has changed net-metering policies. As a result, network operators have gained additional profits at the expense of owners of small renewable-energy installations. 1 See annex Renewable energy in Poland 3 The National Fund for Environmental Protection and Water Management 2 created ‘E-Kumulator’, a support program for existing power plants to adapt to the requirements of EU air-protection directives. Overall policies for renewables have shifted from individual recipients to large energy producers and consumers. Existing renewable energy use is mainly based on traditional sources, mostly biomass (over 70%). Poland’s biggest potential for renewable energy lies in the wind. The combined output of onshore and offshore wind turbines could provide as much as 27% of the country’s energy by 2050. Together, solar and geothermal energy could account for up to 20% of national energy needs: about the same as biomass. Solar power might be particularly useful during hot days when demand is high and traditional power plants have trouble producing enough electricity. But only 1–2% of the potential of solar and geothermal sources have been developed so far. Max capacity in Polish Power System (as of 31 December 2017) Megawatts Coal-fired power plants 20 247 MW Lignite-fired power plants 9 352 MW Gas power plants 2 341 MW Industrial power plants 2 813 MW Hydroelectric power plants 2 328 MW Renewable resources 6 341 MW Nuclear 0 MW Total 43 421 MW Source: National Centre for Nuclear Research (https://www.ncbj.gov.pl/) The biggest challenge for the Polish energy sector is the transformation of the sector in line with environmental and climate policies. A high share of coal technologies implies the need for CO2 reduction and other pollutants emissions. Back in 2013 the share of renewables in Poland’s total gross energy consumption amounted to 11.4% and it seemed that the target Poland had committed to (15% by 2020) was within reach. Three years later, in 2016, instead of rising, the share of RES in Poland’s total energy balance was decreasing. At the same time, most EU member states were steadily increasing their percentage share of RES without any major disruption to their local energy markets. The implementation of the Energy Law Act3 in 1997 had the biggest importance. The Act implemented legal and economic conditions for the energy sector that were in line with first market directive of European Community. Since 2004, after Polish accession to the European Union, Polish regulations are driven by EU legislations, which are then transposed to national law. The activities carried out by the Polish energy sector in recent years enabled meeting the challenges resulting from the adaptation to global and EU requirements relating to the reduction of GHG emissions and air pollution. As a result, EU emission standards in Poland are being met, and Kyoto targets have been achieved with a large surplus - 29% reduction as compared to required 6%. 2 https://www.nfosigw.gov.pl/en/ 3 https://www.ure.gov.pl/pl 4 Ambitious greenhouse gas reduction targets for Poland will be a significant challenge as a result of historical dependency on local energy resources, in the form of hard coal and lignite. Despite many efforts, coal remains the dominant fuel (about 80% of electricity production in 2017). Nevertheless, further development of the Polish energy mix does assume a high increase in the share of renewable energy and distributed generation. Share of renewable energy in gross final energy consumption Source: Central Statistical Office of Poland (www.stat.gov.pl) In total, in the last ten years, expenditures for the development of renewable energy in Poland amounted to approximately EUR 15 bn. The interest of Polish authorities in the development of renewable energy is reflected in the value of undertaken investments. In order to fulfil Europe’s targets and to adjust Poland’s energy policy to European standards, the special act of law dedicated to the renewable energy was signed by the Polish president in March 2015. The act handles issues such as: enhancing energy security and environmental protection, rational renewable energy sources’ consumption, and optimal and sustainable energy procurement for its final consumers. Some of the resolutions came into force in the mid-April 2015, others - including ways of supporting producers of energy coming from renewable sources - in January 2016. Until 2005, RES were developed only in the field of hydroelectric power plants and the local use of biomass. In 2006, a support system for renewable energy was introduced. Producers generating energy
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